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Culture secretary Ben Bradshaw officially gave product placement the go ahead on February 9, despite staunch opposition from cabinet colleagues and public health groups, including the British Medical Association.
The legislation, which is an amendment to the 1972 European Communities Act, will include a raft of exemptions and conditions, reports The Guardian.
Bradshaw has maintained the exclusion of all alcohol, junk food, tobacco and gambling products from placement on UK television, along with the national lottery and infant baby milk.
Children's shows aimed at under-18s, religious programming, news and current affairs will also remain exempt from product placement.
Broadcasters will be unable to place commercial products until Ofcom has launched a full public consultation and amended the broadcasting code.
However, programme makers will be able to use placement in their current productions on the proviso that they are not screened until the new regulations are agreed, most likely in late autumn.
In its consultation, Ofcom will ask viewers whether they want to be notified at the start and end of the each commercial break that product placement has been used.
Bradshaw has also said that the use of product placement must not affect the programme's editorial independence or directly encourage viewers into purchases or rentals.
Despite previous bullish forecasts, the restrictions are expected to mean that revenue derived from product placement will be relatively modest.
